entrepreneurial orientation, innovation capabilities and export performance

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Entrepreneurial Orientation, Innovation Capabilities and Export Performance Joaquín Alegre Joaquín Alegre Professor in Innovation Management Professor in Innovation Management University of Valencia University of Valencia [email protected] [email protected] [email protected] [email protected]

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Entrepreneurial Orientation, Innovation Capabilities and Export Performance. Joaquín Alegre Professor in I nnovation Management University of Valencia [email protected] [email protected]. Valencia. Valencia… A venue for international conferences. EIBA 2009 OLKC 2012 - PowerPoint PPT Presentation

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Page 1: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Joaquín AlegreJoaquín AlegreProfessor in Innovation ManagementProfessor in Innovation Management

University of ValenciaUniversity of Valencia

[email protected]@uv.es

[email protected]@sussex.ac.uk

Page 2: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Valencia

Page 3: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Valencia… A venue for international conferences

- EIBA 2009

- OLKC 2012

- EURAM 2014 (http://www.euram-

online.org/conference/2014/)

Page 4: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

University of Valencia

Created in 1499 Over 55,000 students (Degrees & Masters) 2nd most ‘popular’ destination for Erasmus students Teaching in Spanish, Catalan & English Doctoral programmes with Latin America

Page 5: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Topic Relevance & Research objectives

Entrepreneurship as well as innovation and exports are widely viewed as an important stimulus of positive outcomes at both firm and society levels (Ireland & Webb, 2007)

EO-Performance Lit. (Rauch, Wiklund, Lumpkin & Frese, 2009; Blackburn & Kovalainen, 2009)

OBJECTIVE 1: Examining export performance as an outcome of EO (Yeoh & Jeong, 1995)

OBJECTIVE 2: Proposing 3 types of innovation capabilities: technology, market and design

OBJECTIVE 3: Examining the role of innovation capabilities as mediators in the relationship between entrepreneurial orientation and export performance?

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 6: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

ENTREPRENEURIAL ORIENTATION can be considered a management attitude that seeks to accentuate innovation, flexibility, and responsiveness driven by the perception of opportunity (Guth and Ginsberg, 1990; Jogaratnam et al., 1999).

Conceptual background

EO is characterised by a management that (Covin & Slevin, 1989; Lumpkin & Dess, 1996):

• Innovates: to engage in and support new ideas.• Has an aggressive competitive orientation (Proactiveness): to anticipate and act on future needs by searching for new opportunities.• Has a strong risk taking propensity: to commit significant resources to opportunities that have a reasonable chance of failure.

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 7: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Conceptual background

EO Firm Performance (Zahra & Covin, 1995; Wiklund, 1999)

Intermediate steps? (e.g. Wang, 2008)

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 8: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Wang (2008). Entrepreneurship, Theory & Practice

Conceptual background… Previous findings

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 9: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Conceptual background

EO Firm Performance (Zahra & Covin, 1995; Wiklund, 1999)

EO Exports (Yeoh & Jeong, 1995)

- Export performance as a performance variable.

- Especially important at present for SMEs in Southern Europe!

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 10: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

H1

.

.

Entrepreneurial

Orientation

Innovation

PerformanceExport intensity

.

.

H2

Organizational

Learning Capability

H3

H4

Conceptual background… Previous findings

Fernández-Mesa & Alegre, EIBA 2012

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 11: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Conceptual background… Previous findings

Experimentation

Interaction with the external environment

Dialogue

Participative decision making

Organisational Learning

Capability

Risk Taking

The degree to which new ideas and suggestions are attended to and dealt with sympathetically.

The tolerance of ambiguity, uncertainty, and errors.

The degree of relationships with the external environment.

The sustained collective inquiry into the processes, assumptions, and certainties that make up everyday experience.

The level of influence employees have in the process of decision making.

Chiva & Alegre (2009). British Journal of Management

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 12: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Conceptual background… Previous findings

PRODUCT INNOVATION

EFFICACY

INNOVATION PROJECTS EFFICIENCY

Degree of sucess of product innovation

Efforts carried out to achieve this degree of success

INNOVATION PERFORMANCE

PROCESS INNOVATION

EFFICACY

Degree of sucess of process innovation

Oslo Manual (2005) / Alegre et al., (2012). International Small Business Journal

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 13: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Conceptual background… Previous findings

2004. Perceptual data

2006. Objective data

150 Italian and Spanish SMEs

Entrepreneurial

Orientation

Export

Intensity

2 =135.02 p=0.000; d.f.=65

NFI=0.99; NNFI=0.99; CFI=0.99; RMSEA=0.085

R2=0.204

0.43**

Size

0.14 n.s.

Location

-0.03 n.s.

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 14: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Conceptual background… Previous findings

Entrepreneurial

Orientation

Organizational

Learning Capability

Innovation

Performance

Export

Intensity

Size

.

.

2 =1893.974 p=0.000; d.f.=1065

NFI=0.99; NNFI=0.99; CFI=0.99; RMSEA=0.07

R2=0.628

0.34**

0.35**

-0.10 n.s.

0.52**

0.15**

0.69**

0.04 n.s.

R2=0.549

R2=0.118

Location

0.09n.s.

0.14**

0.02**

2004. Perceptual data

2006. Objective data

150 Italian and Spanish SMEs

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 15: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

INNOVATIONCAPABILITIES

TECHNOLOGYCAPABILITIES

MARKETCAPABILITIES

DESIGNCAPABILITIES

Schmookler (1966)

+ design in some industries

Conceptual background… Our next step forward

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 16: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Our research model: direct link

H1

Entrepreneurial

Orientation

Export

performance

.

Size Location

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

2004. Perceptual data

2012. Perceptual data

Page 17: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Research model: mediation

H1

.

Entrepreneurial

Orientation

Innovation

CapabilitiesExport intensity

.

H2

Size LocationTechnology

Capabilities

Market

CapabilitiesDesign

Capabilities

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

2004. Perceptual data

2012. Perceptual data

Page 18: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

► Target population: Italian and Spanish ceramic tiles producers

Italian Ceramics industrial district (Sassuolo)

Spanish Ceramics industrial district (Castellón)

Methods. Data collection procedure

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 19: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Methods. Data collection procedure

► Target population: Italian and Spanish ceramic tiles producers

World leaders in technology and design.

Innovating Industry.

Top world exporters.

Similar characteristics in both industrial districts: Geographical

concentration, SMEs, Internationalization.

Single industry study: It has the advantage of analyzing an

homogeneous population.

Innovation, and internationalization processes might differ

substantially from one industry to another (technology, markets, design

issues, etc…).

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 20: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

► Survey #1 (2004)

► Sample: 182 firms

100 Spanish firms

82 Italian firms

► EO: 1 dimension & 9 items (Covin & Slevin, 1989)

Answered by General Manager in 2004

► Pre-test: 4 technicians from ITC (Spanish Technological Institute in Ceramics)

► Non response bias assessment (Comparison for turnover & no. of employees)

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Methods. Data collection procedure & Measures

Page 21: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Methods. Data collection procedure & Measures

► Survey #2 (2012)

► Sample: 226 firms111 Spanish firms

105 Italian firms

► Innovation capabilities: - Technology Capabilities (Huang, JBR, 2011)

- Market Capabilities (Vorhies et al., SMJ, 2009)

- Design Capabilities (Chiva & Alegre, JPIM, 2009)

Answered by Operarions Manager in 2012

► Export performance (Lages et al., JIM, 2009)

Answered by CEO in 2012

► Pre-test: 4 technicians from ITC (Spanish Technological Institute in Ceramics)

► Non response bias assessment (Comparison for turnover & no. of employees)

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 22: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Results…

Innovation

Capabilities

.

.

2 =191,844 p=0.000; d.f.=74

NFI=0.891; NNFI=0.913; CFI=0.929; RMSEA=0.084

0.87**

Technology

Capability

Marketing

Capability

Design

Capability

0.77**

0.82** R2=0.752

AFC Innovation Capabilities

N=226

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 23: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Results…

Innovation

Capabilities

Export

Performance

.

2 =253.63 p=0.000; d.f.=115

NFI=0.906; NNFI=0.936; CFI=0.946; RMSEA=0.073

R2=0.292

0.86**

0.54**

Technology

Capability

Marketing

Capability

Design

Capability

0.80**

0.81**

N=226

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 24: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Expected Results: mediating model

H1

.

.

Entrepreneurial

Orientation

Innovation

CapabilitiesExport intensity

.

.

H2

Size LocationTechnology

Capabilities

Market

CapabilitiesDesign

Capabilities

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 25: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Findings & Discussion Exports be an outstanding performance concept, especially for SMEs in crisis

times

Proposal of Innovation capabilities as a three-dimensions concept +

Confirmatory analysis

Deepening the relationship between innovation and exports in manufacturing

industries

We also expect to confirm:

- EO is a managerial attitude that could be considered as an important antecedent of

Innovation Capabilities and Export outcomes.

- EO could be found useful in explaining intra-industry performance differences in

terms of export performance.

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 26: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Managerial implications

EO & Innovation Capabilities: Sucess factors that depend on deliberate managerial action.

How costly is it to develop Innovation Capabilities in a firm?

Is it an option? Isn’t it a way of adapting to current times”?

Limitations & Future Research Adding more mediating variables to the EO-performance link

Single industry analysis Other industries

Case studies to obtain a more thorough picture of the situation that allows

focusing on the whole processes of learning and innovation.

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Page 27: Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Entrepreneurial Orientation, Innovation Capabilities and Export Performance

Joaquín AlegreJoaquín AlegreProfessor in Innovation ManagementProfessor in Innovation Management

University of ValenciaUniversity of Valencia

[email protected]@uv.es

[email protected]@sussex.ac.uk